Integration among Spatial Onion Markets in Nigeria- A Cointegration Analysis

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Adesola Adebola Ikudayisi
Adesola Adebola Ikudayisi
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M. A.Y. Rahji
M. A.Y. Rahji
α University of Ibadan University of Ibadan

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Integration among Spatial Onion Markets in Nigeria- A Cointegration Analysis

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Abstract

The study aimed at examining spatial market integration among geographically separated onion markets in Nigeria. Secondary data involving monthly retail price data of onion crop in the selected producing and consuming states were used for the analysis. The study was analysed using Ravallion model, Johansen cointegration, error correction model and granger causality. The index of market concentration indicated low short run market integration of onion market (IMC > 1), which could be as a result of poor road network in spatially separated markets. There was long run cointegration exist among the producing and consuming states and the error correction model result indicated that the rates of price transfer were generally moderate. This may be related to efficiency of information flow. The study recommends that farmers should be provided with more price information and good road network to enable them take advantage of spatial price differences.

References

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Adesola Adebola Ikudayisi. 2015. \u201cIntegration among Spatial Onion Markets in Nigeria- A Cointegration Analysis\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 15 (GJHSS Volume 15 Issue E3): .

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Issue Cover
GJHSS Volume 15 Issue E3
Pg. 59- 68
Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: FOR Code: 340299
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v1.2

Issue date

May 15, 2015

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en
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The study aimed at examining spatial market integration among geographically separated onion markets in Nigeria. Secondary data involving monthly retail price data of onion crop in the selected producing and consuming states were used for the analysis. The study was analysed using Ravallion model, Johansen cointegration, error correction model and granger causality. The index of market concentration indicated low short run market integration of onion market (IMC > 1), which could be as a result of poor road network in spatially separated markets. There was long run cointegration exist among the producing and consuming states and the error correction model result indicated that the rates of price transfer were generally moderate. This may be related to efficiency of information flow. The study recommends that farmers should be provided with more price information and good road network to enable them take advantage of spatial price differences.

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Integration among Spatial Onion Markets in Nigeria- A Cointegration Analysis

Adesola Adebola Ikudayisi
Adesola Adebola Ikudayisi University of Ibadan
M. A.Y. Rahji
M. A.Y. Rahji

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